OPEC Forecasts 1.3% Oil Demand Growth Next Year - Finance News

Getty Images

Getty Images

Oil market investors are losing confidence over OPEC's effort to offset the glut of supplies, though the impact could be hitting US producers, the IEA said.

The downside is that there are production gains in Libya and Nigeria, which aren't subject to an OPEC-led agreement to cut about 2% of the world's daily output. However, the initiative ultimately failed when Iraq, OPEC's No. 2 oil producer, began selling its heavy crude to American buyers as a substitute for Saudi Arabian grades.

"We're fairly in consensus of what our position is, there is no disagreement on that, but just to set the record straight, the price of oil today is hovering around $44.70 cent per barrel, so there is a bit of upsurge trajectory which is good, which means the price for Nigeria is probably in the $46 type range".

It's like I said before, losing money on every barrel and trying to make up for it in volume is not a sustainable business plan. The U.S. Energy Information Administration contributed to the encouraging outlook by reducing its production forecasts for 2018 to a production increase of 570,000 barrels per day, down from June's forecast of 680,000 barrels per day. Nigeria's crude oil production increased to 1.68 million bpd in May, up by 174,200 bpd over April-the highest level in more than a year-after the restart of Forcados loadings for the first time since October 2016. There was a 34,000 barrel increase from Alaska.

However, the IEA said data for the quarter remains incomplete. They must use it or lose it. All of us in OPEC are very united and focused on what needs to be done to stabilize the market.

American to end Etihad & Qatar codeshares over subsidy row
Qatar Airways chief executive officer Akbar Al Baker apologised for calling all American flight attendants "grandmothers". Etihad accused American for being anti competitive and anti consumer and was very disappointed with this decision.

In fact, PIRA Energy estimates predict that in three years the USA will export 2.25m barrels a day, against the 2.1m b/d of Kuwait, 1.7m b/d of Nigeria, and 1m b/d of the U.S. at the beginning of the year. That was the biggest supply drop since September.

U.S. West Texas and internationally-favored Brent crude oil prices retreated from earlier highs on Wednesday after U.S. government data showed U.S. crude supply fell more than expected the week-ended July 7 as imports declined and drillers continued to produce more. The SPR has been giving the market a false sense of security that oil supply is not draining as quickly as it is but is the market paying attention.

Limiting the upside is rising US production, steady growth in producing oil rigs and rising production in Libya and Nigeria. Total compliance in the deal is at about 78 percent, down from the 95 percent reported in May. Civil war and other violence caused Libyan production to declineby as much as 90% from its post-Qaddafi high of 1.5 million bpd in 2014.

Crude oil prices reached their lowest year-to-date levels in late June.

Recommended News

  • Froome keeping watch on rival Aru

    Froome keeping watch on rival Aru

    Statistic, quote and fact of the day after the 12th stage of the Tour de France , a 214.5km ride from Pay on Thursday. Nairo Quintana had already been dropped as the Colombian struggled to recover from the Giro d'Italia.
    Sixteen die in US military plane crash in Mississippi

    Sixteen die in US military plane crash in Mississippi

    County emergency management director Fred Randle said there were no survivors from the plane, according to CNN. Julian Keviann, 31, was killed Monday night when the military aircraft went down in a field Monday night.
    IPhone production issues reportedly threaten Apple sales rebound

    IPhone production issues reportedly threaten Apple sales rebound

    But even though the hardware modules needed for the feature to work are good to go, the software reportedly isn't up to par yet. Whatever shape the iPhone 8 launches in you shouldn't have too long to wait for it, with a September or October launch likely.
  • Brazilian youngster targeting Man Utd breakthrough this season

    Brazilian youngster targeting Man Utd breakthrough this season

    Finally, there is a bit of bad news for United fans concerning the future of Ivan Perisic , says the Daily Express . Nainggolan, 29, is a powerful midfield player and Belgian global .
    Best Tweets By Indian Cricketers Congratulating Mithali Raj For Her Record

    Best Tweets By Indian Cricketers Congratulating Mithali Raj For Her Record

    Mithali, however, was very slow off the blocks even though her innings had four boundaries and a six. Her unbeaten 76 saw her pass 5000 career runs but she fell just one run short of 3000 ODI runs.
    Beachgoers form human chain to rescue family caught in riptide

    Beachgoers form human chain to rescue family caught in riptide

    Still, they ventured into the surf to help save the exhausted swimmers, who had been treading water for at least 20 minutes. Thanks to a beach full of Good Samaritans, ten lives were saved from a rip current at Panama City Beach in Florida .
  • Wimbledon 2017: Venus Williams to ask Serena for advice on Garbine Muguruza

    Wimbledon 2017: Venus Williams to ask Serena for advice on Garbine Muguruza

    At the Australian Open a year ago , Konta reached her only pervious major semifinal, beating Williams in the first round. Muguruza , who was born in Venezuela and raised in Spain, cruised in her semifinal, 6-1, 6-1 over Magdalena Rybarikova .
    US Stocks Mixed Ahead of Yellen Testimony

    US Stocks Mixed Ahead of Yellen Testimony

    The ILO jobless rate came in at 4.5 percent in three months to May versus 4.9 percent in the same period of previous year. A stronger dollar and rising rates are creating a push and pull in equity market leadership, Arone said.
    New organ donors sought as record numbers saved in Suffolk and Essex

    New organ donors sought as record numbers saved in Suffolk and Essex

    The latter only applies to donating a kidney, a small part of your liver, bone from a hip or knee replacement or your placenta. More than 200 people are now alive in Northumberland thanks to organ donation, according to new figures released today.
  • The Hyperloop Completed an IRL Test Run ... Sort Of

    The Hyperloop Completed an IRL Test Run ... Sort Of

    Hyperloop One will continue to run tests at DevLoop in the coming months to validate its next-generation components and software. The new pod design also demonstrates Hyperloop One's quick progression towards building a complete full-scale prototype.
    Do not let the terror design to escalate

    Do not let the terror design to escalate

    LeT spokesman Abdullah Ghaznavi, while condemning the attack on pilgrims, has said, "It is against Islamic teachings". To prevent further attacks, security forces must step up intelligence gathering and follow-up action.
    Silverstone: British Grand Prix's future in doubt

    Silverstone: British Grand Prix's future in doubt

    Alternately, they could opt to choose another venue for the British Grand Prix , such as the rumored street race through London . The race is one of the best-attended on the F1 calendar and attracted 139,000 fans a year ago and a similar number in 2015.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.